Financial Data and Key Metrics Changes - The company reported earnings before taxation of $89 million and a net profit after tax of $126 million, despite facing significant operational constraints [8][20] - The financial results were significantly impacted by ongoing engine availability issues, with an estimated gross impact of $280 million to $320 million for the year [21][22] - Compensation received from engine manufacturers amounted to $129 million, with $107 million related to the 2025 financial period, recovering about one-third of the financial impact [21][22] Business Line Data and Key Metrics Changes - The transformation program delivered approximately $100 million in incremental EBITDA benefits, with a shift in focus towards ancillary revenue and premium cabin demand [5][16] - The company operated 4% less capacity than the prior year, affecting both top-line revenue and productivity [6][22] - The loyalty program, AirPoint, surpassed 5 million members, indicating strong customer engagement [11] Market Data and Key Metrics Changes - Domestic demand remains soft, particularly in Wellington, with government travel down 10% and corporate travel down 5% [11][58] - International demand, particularly on the Tasman route, remains strong, with plans to add capacity to existing routes [12][60] - Outbound demand to North America has held steady, supported by a strong U.S. dollar, although a shorter booking curve has been noted [13][61] Company Strategy and Development Direction - The company is focused on improving customer experience, strengthening digital infrastructure, and enhancing operational resilience [5][14] - Future capacity growth is expected to be low single digits in FY 2026, with a more significant increase anticipated in FY 2027 and FY 2028 as engine constraints ease [6][40] - The company aims to leverage digital systems and AI to improve cost efficiencies and maintain stable fixed costs as the network grows [27][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by engine availability issues, which have proven to be more persistent than expected [35][39] - The outlook for FY 2026 remains constrained, with expectations of non-fuel cost inflation of 3% to 5% due to increased aviation sector levies and charges [51][52] - Management expressed confidence in recovery as engine challenges and economic conditions improve, with a focus on maintaining customer satisfaction and operational performance [52][90] Other Important Information - The company declared a final dividend of $1.25 per share, totaling approximately $40 million for the year [34] - The company has a robust capital management framework in place, with liquidity exceeding target ranges [33] Q&A Session Summary Question: Clarification on FY 2026 non-fuel operating cost inflation - Management confirmed that the transformation benefits for FY 2026 are expected to offset non-fuel cost inflation pressures [54][56] Question: Insights on domestic and international demand - Management noted that while Wellington remains challenging, other regions like Christchurch and Queenstown are performing better, and international demand, particularly from Australia, is strong [57][60] Question: Guidance on compensation and liquidity - Management indicated that the first half guidance assumes a reduction in compensation from engine manufacturers and noted that liquidity remains strong [80][82]